Nikkei up 1.6 pct, led by exporters on Wall St, yen

(Updates to midmorning)

TOKYO, April 21 (Reuters) - Japan's Nikkei average rose 1.6 percent on Monday, extending its gains for a fifth day, led by exporters such as Honda Motor Co Ltd (7267.T: Quote, Profile, Research, Stock Buzz) after a rally on Wall Street and a softening in the yen versus the dollar.

Financials such as Japan's largest bank Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) gained on receding pessimism about the credit crisis following Citigroup's (C.N: Quote, Profile, Research, Stock Buzz) earnings report.

"Investors are breathing a sigh of relief," said Yoku Ihara, a manager of investment information at Retela Crea Securities.

Earth-moving equipment maker Komatsu Ltd (6301.T: Quote, Profile, Research, Stock Buzz) jumped 5.7 percent to 2,960 yen after bigger rival Caterpillar (CAT.N: Quote, Profile, Research, Stock Buzz) reported stronger-than-expected profits.

"Earnings by Caterpillar and others showed the struggles of financials may not have spread into other businesses," Ihara said.

As of 0047 GMT, the benchmark Nikkei average .N225 was 210.55 points higher at 13,678.93. The broader TOPIX index added 1.5 percent to 1,323.33.

U.S. stocks surged on Friday as results from Internet leader Google (GOOG.O: Quote, Profile, Research, Stock Buzz) and Caterpillar showed resilience in the face of a slowing economy, with profits that defied Wall Street's modest expectations.

Honda jumped 6.2 percent to 3,250 yen, giving the biggest individual boost to the Nikkei. Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) rose 3.5 percent to 5,290 yen.